Capital Economics on the Aussie employment report ()
this is via LiveSquawk
April’s Australian labour market data are unlikely to prompt the RBA to follow May’s rate cut with another reduction at the next meeting in June – we still think the next cut will come at the August meeting. That said, we are becoming more concerned about the quality of the jobs being created. The headline numbers are decent enough, with the 10,800 rise in employment in April and the stable unemployment rate of 5.7% both coming in close to the consensus forecasts. Employment is still growing at an annual rate of 2.1% and the business indicators suggest that it will stay close to that rate in the coming months. This means the RBA doesn’t need to change its view that "conditions in the labour market are continuing to improve, albeit at a slower rate than last year" and its forecast that the unemployment rate will stay close to 5.7% until next year.